I’m convinced it is a conspiracy. Every time I go on the
road for a few days, putting a hold on the updating of the Daily Labor News Digest,
all hell seems to break loose. Evidently the ruling class sees these rare
interruptions in information flow as narrow windows of opportunity to take care
of business. I’ll briefly comment on some of the major developments.

Historic Defeat
In our last WIR we noted the unusual length of the hour-by-hour extension of the
UAW-GM contract while negotiations continued. The very next day Ron Gettelfinger
told everybody to hit the bricks, calling the first national strike against
General Motors since 1970. It was also the shortest, wrapped up in two days.

The agreement now being voted on
by UAW members is not just another give-back deal. It is a defeat of truly
historic proportions for not just auto workers but the entire American working
class.

* The VEBA deal signals the end
to company obligations to honor the promise of the last half-century to reward
those who do the many faceted hard work of building cars with a secure
retirement with middle class living standards. The details of allowing GM to buy
out of this pledge have yet to be worked out. But the agreement “in principle”
means future generations of auto workers will receive no guarantee of health
care when they retire and benefits for present UAW members are dependent on the
successful investment of VEBA funds. Those few companies, and public sector
employers, still offering retiree health care will demand–and most likely
get–the same deal.

* The new second class tier for
new hires created in this settlement will not only get half-wages in their
“non-core” jobs. They will not be covered by the traditional defined benefit
pension that has allowed many UAW retirees to get 3000 dollars a month on top of
their Social Security. Instead they will be put in to a 401(k). They may be able
to eventually bid on top tier jobs and receive the full pay level. Indeed, they
will furnish the lion’s share of filling in attrition in those jobs, which GM
will stimulate by offering buy-outs. But they will never get a pension or health
care when they retire. This deal distributes the nails to all employers to
finally close the coffin on defined benefit.

* The strike was called over job
security and Solidarity House has claimed a big victory in this area. But not
everyone will join in this joyous celebration. The nine plants previously
announced as closing will close. GM has pledged to keep 16 of the 18 assembly
plants not already on the closed list open. One of the 18 is under IUE contract
and its fate was not settled in the UAW deal. That leaves one without guarantee,
apparently the Wilmington, Delaware plant. Other plants liable to either
closing, or sale, include the Livonia engine plant, a small engine plant in
Parma, Ohio, and stamping plants in Flint and Indianapolis. The Job Bank was not
eliminated but limits on time spent in it have been imposed and workers are
expected to move much farther than previously to other open GM positions. All in
all, considerably less job security than any UAW contract in decades.

The UAW leaders will now turn to
their “partners” at Ford and Chrysler. Both have indicated the GM deal is too
rich for their blood. Historically, there have been few deviations in pattern
bargaining among the Big Three. But historically we never saw the UAW negotiate
two tiers, or abandon defined benefit pensions at the Big Three either. All bets
are off for the next round of surrender in Detroit.

A Deal At UPS
UPS is now the biggest national union contract. The Teamsters have announced
they have successfully negotiated a new agreement nearly a year early. So far
details are murky, not even any statement yet from TDU, except for one
element–UPS pull out from the Central States Pension Fund.

In better days the multi-employer
regional pension funds set up by the Teamsters had a progressive character. They
made portability of benefits possible when workers had to move from one job to
another within the fund’s jurisdiction. But the Central States in particular has
taken some rough rides. For a long time the fund was run by out and out
gangsters who ripped it off. Eventually criminal prosecutions, and rank and file
insurgency, got it cleaned up and restored to good health. But then in 2003 bad
investment strategy nearly tanked the fund again. It’s estimated the fund is now
49 percent underfunded.

The new deal allows UPS to buy
out its obligation to Central States for 6.1 billion and shift 44,000 active
workers currently covered into a new jointly administered plan. It’s estimated
the buy out would still leave Central States 30 percent underfunded.

Still no details on wages or
other benefits or conditions in the new tentative agreement.

Don’t Call Senate Do-Nothing
Our peace Senate has been busy. The other day they demonstrated their commitment
to self-determination by voting 75-23 in favor of partitioning Iraq. Then they
approved the war funding bill by 92-3. Five senators were absent–all
presidential candidates off chasing votes. Among those in favor was the
independent, sometimes calling himself “socialist,” Bernie Sanders. The only
three no votes were Democrats Byrd and Feingold and Republican Coburn.

Nile Strike Fever
Unions may be withering in the USA but they are making a big fuss again in the
Middle East. We’ve often reported on actions by Iraqi unions. Two subscribers to
our e-mail list forwarded stories about the trade union upsurge in Egypt as
well.

Back in the day of Nasser most
Egyptian industry was nationalized. Nasser was part of the Third Way movement,
which included the leaders at the time of India and Yugoslavia, that sought to
incorporate the best features of both western democratic capitalism and what was
called socialism in the Soviet Union and China.

Today Egypt incorporates the
worst of capitalism in the era of globalization while maintaining some left
overs of the oppressive bureaucratic features of the old USSR. Economic
“liberalization” has made the state industries cogs in the global capitalist
market. Inflation is galloping, the workers are hurting. But they are fighting
back and winning some initial, at least partial victories.

The government is fearful that
the unions may become the base for a genuine political opposition–much more of a
threat than the sectarian Muslim Brotherhood. Keep an eye on Egypt.

Party Time Weekends
The occasion for my road trip was an invitation to speak to the annual state
council meeting of the Ohio State Labor Party in Cleveland last Saturday. The
OSLP is quite active in the Single-Payer Action Network of Ohio as well as in US
Labor Against the War and the local antiwar coalitions. There were guests from
these activities on hand at the gathering including an AFSC leader, union
officials from UNITE-HERE, a former UAW regional director, and observers from
Progressive Democrats of America, the Green Party, and Natural Law Party. After
a report by OSLP leader Jerry Gordon, and my presentation, we had a vigorous but
fraternal exchange during the discussion. One of the PDA members, an RN
dedicated to the single-payer movement, signed up to join the Labor Party.

It was a welcome breath of fresh
air in the smoggy labor and peace movement environment and I thank the Ohio
party for inviting me to be part of it. Within the next few days I will post my
remarks. I also want to thank my old friends Carrie and Adam in Chicago for once
again extending hospitality for stop-overs both coming and going. They even
included me in their son Sam’s birthday celebration.

This coming Saturday the Kansas City Labor Party
will be holding a “mini-conference.”
LP national organizer Mark Dudzic will be a special guest speaker, talking about
the need for Just Transition to protect jobs and living standards as we adjust
our economy in the face of global warming. Tony Saper, a Metro bus driver, and
ATU representative to the Regional Transit Alliance, will talk about the Kansas
City transit crisis. I will be preparing lunch–and also speaking about the
Post-SiCKO Fight for Single-Payer.

Shawn Saving will be conducting a radio interview
with Mark Dudzic about Just Transition on this Thursday’s Heartland Labor Forumradio show.

Quote of the Week
“Politics and the economy are all one big interactive system.” George Shultz,
former Secretary of State and Secretary of the Treasury, receiving the Truman
Medal for Economic Policy.

That’s all for this week.

The Fall
Labor Party Issues Mini-ConferenceSaturday,
October 6, North Kansas City LibraryClickhere
for information